RR\1153938EN.docx PE619.126v03-00
EN United in diversity EN
European Parliament 2014-2019
Plenary sitting
A8-0184/2018
23.5.2018
REPORT
on cohesion policy and the circular economy
(2017/2211(INI))
Committee on Regional Development
Rapporteur: Davor Škrlec
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PR_INI_ImplReport
CONTENTS
Page
EXPLANATORY STATEMENT - SUMMARY OF FACTS AND FINDINGS ..................... 3
MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION ............................................ 6
OPINION OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND
FOOD SAFETY ....................................................................................................................... 18
INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE ................................ 24
FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE .................................... 25
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EXPLANATORY STATEMENT - SUMMARY OF FACTS AND FINDINGS
Circular Economy is a new European policy concept that envisions structural reform of our
economy from “take, make, dispose” model into cyclical model that is more in line with the
living system. Thus, in order to make the shift and redesign our future, European Commission
published in December 2015 the Circular Economy Action Plan, a broad EU public policy
framework with aim to redefine our societal approach to production and consumption of goods
and services. As one of the core European policies, Cohesion policy is perceived as one of the
main sources of investment. Moreover, with the respect to the principles of the proportionality
and subsidiarity, cohesion policy also provides the best implementation tools for the circular
economy. Multilevel governance, as the backbone of the cohesion policy, operates under the
same principle. Therefore, these two public policies are driven by the same logic, and should
complement each other whilst achieving their policy goals. We need to recognize and
strengthen existing policy tools within both polices in order to fully exploit the mentioned
potential.
Role of Cohesion policy in promoting circular economy
During the preparation of the programming period 2014-2020, circular economy was not
recognized as a policy priority area in the European Union. Therefore, after the adoption of
Circular Economy Action Plan efforts were made to recognize relevant and available
investment potential within the ESI Funds that could be furthermore streamlined towards
implementation of circular economy.
For improved waste management and focus on waste prevention, reuse and recycling, which
are the preferred waste treatment options in the European Union, there is an investment
potential of 5.5 billion EUR. Furthermore, there are 2.3 billion EUR in environmentally-
friendly production processes and resource efficiency in SMEs. Cohesion Policy can support
water reuse with 15 billion EUR allocated for investment in the water sector during the 2014-
2020 period. Important research and innovation funding opportunities are also available and
the circular economy is a priority in the Smart Specialisation Strategies that steer these
investments.
Circular Economy as a driver for sustainable and regional development
All the towns and municipalities in European Union will be the engine of circular economy
measures. Local and regional authorities are the closest to the citizens and local challenges,
thus they have better insight into local challenges and opportunities. Therefore, it is of utmost
importance to secure adequate functional and financial autonomy for local and regional
authorities, especially with regards to their right to prepare and implement own development
strategies Community-Led Local Development (CLLD) and Integrated Territorial Investment
(ITI) to help local stakeholders combine funding streams and plan local initiatives targeted at
circular economy.
Thinking in systems is one of the basic principles of the circular economy, since the shift from
a linear model of our economy into circular can only be achieved through cooperation and
connection of business and production models. The report also emphasizes the role of SMEs
which know the local markets better and can raise awareness about positive practices through
cooperation with the communities, create local value and sustainable local jobs. Through
innovation and development, SMEs provide the market and society with new solutions and
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circular business models. In this process, they rely on Cohesion policy, especially on the
smart specialisation and synergies with the Horizon 2020, the European Structural and
Investment Funds, as well as on investments triggered through European Investment Bank
(EIB) and European Bank for Reconstruction and Development (EBRD) etc. We should
support these efforts and tailor both policies in this direction, with the objective to achieve that
present innovations become tomorrow’s realities. Unfortunately, there is still lack of demand
for circular products and services, often because they are more expensive than linear ones,
while the negative externalities of the latter are not accounted for. Green public procurement
in combination with circular procurement presents formidable tool for public authorities to
incentives circular economy markets.
Additionally, the macro-regional approach is the key to achieving regional cooperation and
coordination, as well as an opportunity for the establishment of regional markets, in particular
for secondary raw materials. Thus, we must streamline the creation of joint capacities, as for
instance with respect to regeneration of waste oils and other recycling capacities. Cross-
border and transnational cooperation programmes are crucial to foster interregional
cooperation on circular economy activities, promote industrial symbiosis, awareness-raising
and the exchange of knowledge and best practices.
All of this effort is there to make our regions and local communities more resilient and
competitive in the global markets. Circular Economy provides local jobs and business models
that are based in the heart of European Union, in its regions and local municipalities. One of
the main pre-conditions for achieving a fully functioning Circular Economy model is an
increase in sustainable and local energy production, while on the same side increasing the
resource efficiency and flow of recovered materials. Renewable energy sources are one of the
essential supporting pillars of circular economy, thus RES represent one of the most important
indirect investments into circular economy with substantial potential for boosting local green
employment.
Bioeconomy as an established European public policy area consists of crucial policy actions
that can significantly contribute to the implementation of circular economy. The shift to
biological raw materials and biological processing methods could save up to 2.5 billion tons
of CO2 equivalents per year by 2030, while at the same time reduce fossil fuel dependence
which presents a crucial long-term challenge of the European Union. Bio-based,
biodegradable and compostable materials, as well as permanent materials, are important for
achieving better resource efficiency and retention of valuable materials in circular loops. The
future innovation potential lies in achieving more efficient management of bio-feed stocks, as
well as phasing out of toxic substances from all materials.
One of the first legislative steps towards implementation of the Circular Economy Package
was the Waste Package that defined many necessary provisions for proper handling of the
waste, which is the main challenge for local municipalities and regions. The attainment of the
targets set out in the Waste Package shall be unavoidably financially supported by the
cohesion policy. Having in mind recycling rates set-out on the European level and the
envisioned implementation timeframe, it is necessary to focus investments on the higher
levels of waste hierarchy to be able to attain targets and avoid long-term technological
lock-ins. Member States should use national circular economy strategies and national
waste management plans as the long-term policy tools that can provide clear guidelines
to all stakeholders and signal to the European Commission that they are on the right path
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for achieving circular economy.
Food waste is recognized globally as a major economical and ethical problem that needs
to be tackled in each stage of food value chains. The European Union is currently wastes
around 173 kilograms of food per person each year, which represents 20% of annual food
production in Europe. Local action is proven to be very effective in tackling this
overreaching challenge, as there are some successful stories and implemented projects
across the Europe. Therefore, there should be an increase in funding opportunities that
address this important policy area.
Littering is proving to be also one of the burning global challenges that usually has the
biggest impact on the local communities and their quality of life. Certain estimates are
showing that clean-ups are costing each European taxpayer around 25 EUR per year,
while in some Member States the cost can go as high as 54 EUR annually. Tackling the
litter needs to be better promoted and funded through ESI Funds since it has both
environmental and social benefits. The poorest layers of the society are the most
impacted by inaction. Moreover, solving the problem of marine litter needs to start with
prevention of land littering.
Circular Economy in post-2020 cohesion policy
Cohesion policy and circular economy are not only about infrastructure policies but also
about social cohesion and solidarity. They provide answers to the challenges faced by local
and regional communities on how to tackle most important climate-related issues. Therefore,
this report considers introduction of a new ex-ante conditionality provision to achieve circular
economy within the cohesion policy framework, in order to allow new operational
programmes to better reflect CE principles. The report demands the implementation of a
relevant tracking methodology for an accurate monitoring of the cohesion policy contribution
in achieving circular economy, and calls for significant increase in circular economy and
climate-related spending in post-2020 cohesion policy.
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MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
on cohesion policy and the circular economy
(2017/2211(INI))
The European Parliament,
– having regard to the Treaty on European Union (TEU), in particular Article 3, and the
Treaty on the Functioning of the European Union (TFEU), in particular Articles 4, 11,
174 to 178, 191 and 349 thereof,
– having regard to the Paris Agreement, Decision 1/CP.21 and the 21st Conference of the
Parties (COP21) to the UNFCCC, and the 11th Conference of the Parties serving as the
Meeting of the Parties to the Kyoto Protocol (CMP11) held in Paris, France, from 30
November to 11 December 2015,
– having regard to Articles 7(2) and 11(2) of the Paris Agreement, which recognise the
local, subnational and regional dimensions of climate change and climate action,
– having regard to the new UN Sustainable Development Goals, and in particular goal 7:
to ‘ensure access to affordable, reliable, sustainable and modern energy for all’ and goal
11: to ‘make cities inclusive, safe, resilient and sustainable’,
– having regard to Regulation (EU) No 1303/2013 of the European Parliament and of the
Council of 17 December 2013 laying down common provisions on the European
Regional Development Fund, the European Social Fund, the Cohesion Fund, the
European Agricultural Fund for Rural Development and the European Maritime and
Fisheries Fund and laying down general provisions on the European Regional
Development Fund, the European Social Fund, the Cohesion Fund and the European
Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006
(hereinafter ‘the Common Provisions Regulation’)1,
– having regard to Regulation (EU) No 1301/2013 of the European Parliament and of the
Council of 17 December 2013 on the European Regional Development Fund and on
specific provisions concerning the Investment for growth and jobs goal and repealing
Regulation (EC) No 1080/20062,
– having regard to Regulation (EU) No 1304/2013 of the European Parliament and of the
Council of 17 December 2013 on the European Social Fund and repealing Council
Regulation (EC) No 1081/20063,
– having regard to Regulation (EU) No 1299/2013 of the European Parliament and of the
Council of 17 December 2013 on specific provisions for the support from the European
Regional Development Fund to the European territorial cooperation goal4,
– having regard to Regulation (EU) No 1302/2013 of the European Parliament and of the
1 OJ L 347, 20.12.2013, p. 320. 2 OJ L 347, 20.12.2013, p. 289. 3 OJ L 347, 20.12.2013, p. 470. 4 OJ L 347, 20.12.2013, p. 259.
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Council of 17 December 2013 amending Regulation (EC) No 1082/2006 on a European
grouping of territorial cooperation (EGTC) as regards the clarification, simplification
and improvement of the establishment and functioning of such groupings1,
– having regard to Regulation (EU) No 1300/2013 of the European Parliament and of the
Council of 17 December 2013 on the Cohesion Fund and repealing Council Regulation
(EC) No 1084/20062,
– having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament
and of the Council of 25 October 2012 on the financial rules applicable to the general
budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/20023,
– having regard to the Commission communication of 16 January 2018 entitled
‘Monitoring framework for the circular economy’ (COM(2018)0029),
– having regard to the Commission communication of 26 January 2017 entitled ‘The role
of waste-to-energy in the circular economy’ (COM(2017)0034),
– having regard to the Commission communication of 26 January 2017 entitled ‘Report
on the implementation of the Circular Economy Action Plan’ (COM(2017)0033),
– having regard to the Commission communication of 14 December 2015 entitled
‘Investing in jobs and growth – maximising the contribution of European Structural and
Investment Funds’ (COM(2015)0639),
– having regard to the Commission communication of 2 December 2015 entitled ‘Closing
the loop – An EU action plan for the Circular Economy’ (COM(2015)0614),
– having regard to the Commission communication of 2 July 2014 entitled ‘Towards a
circular economy: A zero waste programme for Europe’ (COM(2014)0398),
– having regard to the Commission communication of 2 July 2014 entitled ‘Green Action
Plan for SMEs: Enabling SMEs to turn environmental challenges into business
opportunities’ (COM(2014)0440),
– having regard to the Commission communication of 3 March 2010 entitled ‘Europe
2020 – A strategy for smart, sustainable and inclusive growth’ (COM(2010)2020),
– having regard to the Commission communication of 13 February 2012 entitled
‘Innovating for Sustainable Growth: A Bioeconomy for Europe’ (COM(2012)0060),
– having regard to the Commission communication of 10 July 2012 on ‘Smart Cities and
Communities – European Innovation Partnership’ (COM(2012)4701),
– having regard to the study commissioned by the Commission of December 2017
entitled ‘Integration of environmental concerns in Cohesion Policy Funds (ERDF, ESF,
CF) – Results, evolution and trends through three programming periods (2000-2006,
1 OJ L 347, 20.12.2013, p. 303. 2 OJ L 347, 20.12.2013, p. 281. 3 OJ L 298, 26.10.2012, p. 1.
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2007-2013, 2014-2020)’,
– having regard to its resolution of 16 February 2017 on investing in jobs and growth –
maximising the contribution of European Structural and Investment Funds: an
evaluation of the report under Article 16(3) of the Common Provisions Regulation1,
– having regard to its resolution of 13 September 2016 on European Territorial
Cooperation – best practices and innovative measures2,
– having regard to its resolution of 6 July 2016 on synergies for innovation: the European
Structural and Investment Funds, Horizon 2020 and other European innovation funds
and EU programmes3,
– having regard to its resolution of 9 July 2015 on resource efficiency: moving towards a
circular economy4,
– having regard to its resolution of 19 May 2015 on green growth opportunities for
SMEs5,
– having regard to the Smart Islands Declaration of 28 March 2017,
– having regard to Rule 52 of its Rules of Procedure, as well as Article 1(1)(e) of, and
Annex 3 to, the decision of the Conference of Presidents of 12 December 2002 on the
procedure for granting authorisation to draw up own-initiative reports,
– having regard to the report of the Committee on Regional Development and the opinion
of the Committee on the Environment, Public Health and Food Safety (A8-0184/2018),
A. whereas local and regional authorities, which are the most conversant with the local and
regional issues and are key actors for an effective implementation of cohesion policy,
are also at the forefront of the transition to a circular economy; whereas a European
multi-level governance model, built on active and constructive co-operation between the
different levels of governance and stakeholders, together with adequate information and
active involvement of citizens, is key to the achievement of this shift;
B. whereas cities represent just 3 % of the Earth's surface but house more than half of the
world population, consume over 75 % of the global resources, and emit 60-80 % of
greenhouse gas emissions and whereas 70 % of the global population is expected to
move to cities by 2050;
C. whereas the transition to a stronger, more circular economy is both a great opportunity
and a challenge for the EU, its Member States and its citizens, to modernise the
European economy and guide it in a more sustainable direction; whereas it is, in
particular, an opportunity for all European regions and local authorities, which are the
tier of government closest to local communities; whereas it brings possibilities for
1 Texts adopted, P8_TA(2017)0053. 2 Texts adopted, P8_TA(2016)0321. 3 Texts adopted, P8_TA(2016)0311. 4 OJ C 265, 11.8.2017, p. 65. 5 OJ C 353, 27.9.2016, p. 27.
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development and growth to the European regions and can help them build a sustainable
model that achieves economic development, transform existing sectors, improve their
balances of trade and industrial competitiveness with enhanced productivity, create
new, high quality, well-paid jobs and new value chains;
D. whereas around 60 % of EU waste is currently not recycled and whereas great cost
benefits and business opportunities could be created from exploring and introducing
new circular business models for the benefit of EU SMEs;
E. whereas achieving the Paris Agreement targets requires a shift to a more circular
economy and is a vital contribution to the development of an economic model that has
not only profit as its goal, but also protection of the environment;
F. whereas cohesion policy offers not only investment opportunities to respond to local
and regional needs through the European Structural and Investment Funds (ESI Funds),
but also an integrated policy framework to reduce developmental disparities between
the European regions and to help them address the multiple challenges to their
development, including through support for resource efficiency and sustainable
development, as well as territorial cooperation and capacity building and also to attract
and promote private investment;
G. whereas the current legislative framework for cohesion policy does not mention the
transition to a circular economy as an objective, and whereas sustainable development is
a horizontal principle for the use of the ESI Funds, as defined in Article 8 of the
Common Provisions Regulation as well as in the Common Strategic Framework (Annex
I), which will enable the link between existing instruments in support of circular
economy projects to be strengthened;
H. whereas many of the thematic objectives set for the ESI Funds to comply with the
Europe 2020 strategy for smart, sustainable and inclusive growth, as well as the related
ex ante conditionalities, are relevant to the objectives of a circular economy;
I. whereas Article 6 of the Common Provisions Regulation makes it mandatory for
operations supported by the ESI Funds to comply with applicable Union law and
national law relating to the application of Union law, including especially
environmental law;
J. whereas one of the aims of the circular economy is to reduce waste going to landfill and
whereas the securing and remediation of legal and illegal landfills in the Member States
should be regarded as an absolute priority;
K. whereas China banned imports of scrap plastics and unsorted paper waste from 1
January 2018, and whereas that ban will create recycling challenges for the Union,
which will need to be dealt with at regional and local levels;
Role of cohesion policy in promoting the circular economy
1. Welcomes the efforts of the Commission to support the circular economy through
cohesion policy, notably via outreach activities to assist EU Member States and regions
in the uptake of cohesion policy funds for the circular economy;
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2. Notes that, according to the Commission report on the implementation of the Circular
Economy Action Plan, EU support for the 2014-2020 period for innovation, SMEs, the
low-carbon economy and environmental protection amounts to EUR 150 billion and
many of these areas are contributing to the achievement of a circular economy;
3. Notes that the analysis of the outcome of the negotiations concerning the partnership
agreements and European Social Fund (ESF) operational programmes for the current
programming period showed that the ESF has been used to support actions for
introducing greener models of labour organisation, and actions in the green sector;
4. Notes, however, that, as underlined in a study commissioned by the Commission, the
current policy framework does not allow the full contribution of cohesion policy to the
circular economy to be captured; in this respect, points to the fact that the definition of
the existing ‘Intervention Field’ categories used for financial allocations does not cover
the circular economy as such;
5. Urges the Commission to implement the planned circular economy measures, observing
good regulatory practice, and stresses the need to monitor the implementing measures;
6. Stresses the need to implement the Commission’s commitment to a monitoring
framework for the circular economy1 with a view to increasing and evaluating progress
achieved in the transition to a circular economy at EU and Member State level, while
reducing the administrative burden;
7. Calls on the Commission to take extraordinary action to remediate areas used for the
illegal discharge and landfill of hazardous waste, which is adversely affecting the health
and economic and social well-being of the populations concerned;
8. Underlines the role played by the EU’s Framework Programme for Research and
Innovation Horizon 2020 and by the LIFE Programme 2014-2020 in funding innovative
projects and in supporting waste reduction, recycling and reuse projects which are
relevant to the circular economy;
9. Appreciates that several regions have used their smart specialisation strategies to set
priorities related to the circular economy and guide their investments in research and
innovation through cohesion policy towards this objective, playing a fundamental role
in supporting investments and infrastructure that meet the needs of SMEs; calls on the
regional authorities to use this good practice as a common modus operandi and to
implement these smart specialisation strategies;
10. Welcomes the creation of a European Resource Efficiency Excellence Centre for SMEs,
as well as the Circular Economy Finance Support Platform;
11. Reiterates its view that the circular economy goes beyond waste management and
includes areas such as green jobs; renewable energy; resource efficiency; the bio-
economy; agriculture and fisheries policies, with their bio-based industries aiming to
replace fossil fuels; water management; energy efficiency; food waste; marine litter; air
1 Commission communication of 16 January 2018 entitled ‘Monitoring framework for the circular economy’
(COM(2018)0029).
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quality improvement; research and development and innovation in related fields;
acknowledges, however, that waste infrastructure is a crucial element for reducing
linear patterns of production and consumption and that it is necessary to support
innovations in the field of eco-design in order to reduce levels of plastic waste;
12. Recalls that the basic problem that must be resolved first is the secondary materials
market, as if raw materials cost less than recycled ones it is clear that the drive towards
the green economy has slowed down considerably and that the use of structural funds
could be lost in a vicious circle; considers, in this context, that certain ad hoc laws (such
as the upcoming Commission proposal on single-use plastic products) and appropriate
EU-level taxation as part of the own resources of the next multiannual financial
framework can make a decisive contribution to moving towards a circular economy;
13. Emphasises the fact that on average recycled materials only satisfy around 10 % of the
EU demand for materials; recognises, with regard to new developments on global
markets, especially China’s recent ban on scrap plastics and unsorted paper waste, the
new potential for regions and local communities to invest into recycling infrastructure,
create new greens jobs and tackle the current challenges that the EU faces;
14. Highlights the existence and importance of the ex-ante conditionalities on ESI Funds
related to, in particular, the objective of preserving and protecting the environment and
promoting resource efficiency; points especially to the one on ‘promoting economically
and environmentally sustainable investments in the waste sector’; regrets, however, the
negligence of waste hierarchy and lack of sound environmental assessment of long-term
outcomes of investments under the ESI Funds;
15. Calls for coordination and greater cooperation between regions, SMEs and other
public/private entities in order to launch new smart specialisation thematic platforms, in
particular between the agri-food, energy and industrial sectors;
16. Emphasises the importance of applying waste hierarchy as a prerequisite for achieving a
circular economy, as well as the need for greater transparency in the supply chain, so
that end-of-life products and materials can be monitored and recovered efficiently;
furthermore recognises a negative trend of investment of ESI Funds into lower levels of
the waste hierarchy, in particular mechanical biological treatment (MBT) facilities and
incineration, which in some cases leads to overcapacities and long-term technological
lock-in, thus jeopardising the achievement of EU recycling targets; recalls that
encouraging the business community to follow the hierarchy should generate additional
materials in the resource stream as well as offering potential outlets for their use in
manufacturing;
17. Recalls the new waste targets for 2025, 2030 and 2035 established in the review of EU
waste legislation and underlines that the achievement of these targets requires political
commitment at the national, regional and local levels as well as economic investments;
calls on the Member States to make full use of available Union funds in support of such
investments and underlines that these will generate significant returns in terms of
economic growth and job creation;
18. Underlines the importance of regional projects to process residual waste that is entirely
non-recyclable for the purpose of producing sustainable second-generation biofuels,
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after careful separation or separate collection in line with the waste hierarchy;
19. Calls on the Commission to ensure that all definitions relating to waste comply with the
Waste Framework Directive and that comparable data are available on progress made
by Member States and local and regional authorities;
20. Underlines the importance of the Urban Innovative Actions initiative, which has so
far approved eight innovative circular economy projects in urban authorities for ERDF
funding and calls on the Commission to monitor and evaluate their implementation in
order to formulate wider circular economy policies;
The circular economy as a driver for sustainable and regional development
21. Stresses the importance of the partnership principle and the important role of all
stakeholders, in particular regional and local authorities and the non-governmental
sector, including SMEs and social economy enterprises, during the drawing-up of
partnership agreements and operational programmes; calls for a genuine involvement of
partners in policy processes, with the creation of cross-cutting partnerships, and for
circular economy-related objectives to be adequately incorporated into programming
documents; encourages the Member States to develop their own national strategies in
this field in coordination with the EU approach to the circular economy; points to the
leading role that local government can play in achieving the circular economy;
22. Stresses the importance of the role of public-private partnerships in the design and
planning of new products and services that take life cycle into account, with a view to
implementing the four design models that could be used under a circular economy:
designing for longevity; designing for leasing/service; designing for reuse in
manufacture; designing for materials recovery;
23. Stresses the need to change and adapt the current strategies and market models to
accompany the regions in the transition towards this more sustainable form of economy,
while at the same time boosting economic, industrial and environmental
competitiveness;
24. Calls for the implementation of the circular economy within the framework of the
coordinated multilevel governance and partnership principle, with full transparency, the
involvement of local communities and broad public participation;
25. Highlights the need to promote greater cooperation between all the stakeholders
involved in circular economy processes;
26. Notes that projects related to the circular economy which have received cohesion policy
support have brought greater benefits to more developed regions; recognises the limited
administrative capacity of less developed regions and therefore calls on the Member
States’ national authorities and the Commission to use all existing possibilities to
provide expert assistance and to strengthen the capacity of these regions to help them
increase their efforts, and to create conditions for achieving technological leapfrogging
by implementing more projects that meet circular economy principles and by
developing partnerships and closer cooperation with stakeholders such as materials
experts, chemists, manufacturers and recyclers, particularly within the framework of the
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‘Industry 2020 in the circular economy’ initiative;
27. Emphasises the estimates that a shift to biological raw materials and biological
processing methods could save up to 2.5 billion tonnes of CO2 equivalent per year by
2030, thus increasing markets for bio-based raw materials and new consumer products
several-fold; underlines the utmost importance of sustainable management of natural
resources and the preservation of biodiversity while transforming resources into bio-
based products, materials and fuels;
28. Considers that the bioeconomy is essential for regional and local development, since it
increases cohesion between regions through its potential to create jobs and growth in
rural areas; calls for greater use to be made of ESI Funds for the implementation of
existing innovations, through policies to encourage stakeholders, while further fostering
innovation in the development of bio-based, biodegradable, recyclable and compostable
materials produced from sustainably managed biofeed stocks; recalls that consistent
implementation of the bioeconomy may also solve the problem of food waste; calls for
better cooperation between national, regional and local authorities in creating systems
and platforms that connect different actors from the food production, transportation,
retail, consumer and waste sectors, as well as other concerned stakeholders, thus
achieving greater synergies to create efficient solutions;
29. Points out that, in addition to local, regional and national authorities, incentives should
also be given to consumers themselves, who should be constantly informed and
encouraged to change their consumer behaviour in respect of waste management and
production, recycling and issues involving sustainable solutions in their everyday lives;
30. Calls for better, easier and more transparent access to finance for local and regional
authorities, including through the strengthening of their administrative capacities and
through heightened cooperation with the EIB, within the framework of the European
Investment Advisory Hub, to enable increased investments in green jobs, waste
management, smart specialisation, further development of rural areas including as
regards the necessary infrastructure and environmentally friendly technologies, the shift
from fossil fuels to renewable energy sources and the local energy transition, including
energy efficiency, decentralised distribution of energy, clean energy innovation and the
circular economy; welcomes the fact that the EIB has provided over the past five years
about EUR 2.4 billion in co-financing for circular economy projects for waste
management, water management or agricultural research and development; stresses the
importance of better coordination of the ESI Funds and the European Fund for Strategic
Investments (EFSI) in the field of the circular economy, also with a view to ensuring
that programmes include a regional approach and make better use of regional potential
for sustainable energy sources;
31. Calls on Member States, regions and local authorities to encourage the establishment of
and support for reuse and repair networks, in particular those operating as social
economy enterprises, to extend the life of products through reuse, repair and
reutilisation, by facilitating the access of such networks to waste collection points, and
by promoting the use of ESI Funds, economic instruments, procurement criteria, or
other measures in this sense;
32. Stresses that the life cycle sustainability of reuse and recycling also depends on energy
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consumption in transport; underlines that this applies particularly to rural areas where
longer distances between points of collection and processing sites have to be covered;
urges the Commission, the Member States and regional authorities to take the life cycle
approach into account in their circular economy strategies for rural areas in order to
avoid negative overall environmental and climate impacts;
33. Points out that, out of a sample of 32 operational programmes reviewed for a study on
the integration of environmental concerns in cohesion policy funds, nine address the
circular economy and six green jobs; welcomes the existing efforts made by national
and regional authorities but at the same time calls on Member States to better integrate
the circular economy in their operational and regional programmes and partnership
agreements; urges that support be granted to the regions to ensure as smooth as possible
a transition to the circular economy;
34. Calls on the Member States to ensure that the circular economy is suitably incorporated
into educational programmes and vocational training and re-training as an
interdisciplinary subject so as to shape new attitudes which will then help to define new
business models and create new jobs;
35. Calls on the national and regional authorities in charge of preparing operational
programmes to more closely integrate the circular economy into territorial cooperation
programmes, particularly in cross-border cooperation programmes, in order to
implement cross-border solutions that can generate more efficient and cheaper results;
36. Believes that the future planning of ESI Funds in the next programming period should
be better coordinated with the national energy and climate plans for 2030, by using
similar indicators to the ones contained in the Regulation on the Governance of the
Energy Union when possible; asks for an ambitious and coherent strategy for Member
States in order to fulfil the already existing mandatory targets at EU level on climate
mitigation;
37. Calls on Member States to seize the opportunity to further integrate the circular
economy into their current operational programmes during the period of revision;
believes that Commission should facilitate this process while providing assistance to
Member States in analysis of the current state of play and possible areas where the
circular economy and its principles could be applied and added;
38. Considers that the role of the ETC in addressing challenges related to the
implementation of the circular economy should be further enhanced; calls on Member
States to foster cross-border cooperation, in particular through European Territorial
Cooperation (ETC), to implement circular economy projects; furthermore, stresses the
importance of finding sustainable solutions through pre-accession agreements with non-
Member Sates to tackle the ongoing challenges, especially in the domain of air
pollution;
39. Stresses the untapped potential of the on-going macro-regional strategies to help address
challenges related to the implementation of the circular economy, not only in the
Member States but also in third countries located in the same geographical area; stresses
that those strategies should focus on priorities that would support the creation of a
market for secondary raw materials for the Union; calls for the development of EU
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cooperation initiatives with neighbouring countries;
40. Reiterates its views on the importance of adequate capacity building and maintenance in
local, regional and national public authorities, which is also highly relevant for the
transition to a circular economy; points to the important role technical assistance can
play in this field; recognises that regions and urban areas play a vital role in promoting
ownership of the bottom-up energy transition and are most suitable for testing and
implementing integrated energy solutions in direct connection to citizens; stresses the
role that ‘smart cities’ initiatives can play in the circular economy by promoting green
technology models as part of sustainable urban development strategies; underlines that
sustainable and ‘circular’ cities are an instrument for an effective circular economy;
41. Stresses the importance of Green Public Procurement as a driver of the circular
economy, with a potential market of an estimated EUR 1.8 trillion annually delivering
public works, goods and services1;
42. Stresses the need for an energy regulatory framework that encourages citizens and
energy communities to participate in the energy transition through the right to self-
produce and consume, as well as through continued support schemes, guaranteed
priority grid access and priority dispatch for renewable energy;
43. Encourages regional and local authorities to further invest in educational programmes,
in vocational training and requalification of workers, as well as in public awareness-
raising campaigns about the benefits and advantages of all actions with the aim of
implementing the circular economy through cohesion policy projects, thus increasing
citizen participation and influencing consumer behaviour; underlines, in this connection,
the potential of the ESF; stresses that it must encourage young entrepreneurs to move
towards the circular economy, especially in regions with low levels of income and
growth; underlines also that the circular economy is an opportunity for rural areas to
counter depopulation, to diversify their economies and to gain security against risks;
points out, in this respect, that rural areas are in need of incentives for the transition to
sustainable value chains; stresses the importance of developing a specific strategy for
island regions;
44. Encourages the Commission to promote the use of Community-Led Local Development
(CLLD) and Integrated Territorial Investment (ITI) to help local stakeholders combine
funding streams and plan local initiatives targeted at the circular economy;
45. Notes that 80 % of marine litter is from land-based sources; thus emphasises the
importance of tackling of land and marine littering through local and regional action
that has both environmental and human-health benefits; calls on Member States, regions
and local authorities to focus their efforts on preventing the generation of land litter;
46. Calls on the Commission to consider, in the context of the European Semester, the
impact on the calculation of government deficits of regional and national investments
co-financed through ESI Funds in projects related to the circular economy;
47. Welcomes the proposal to revise Drinking Water Directive 98/83/EC, which will
1 ‘Buying green! - A handbook on green public procurement’, 3rd Edition, European Commission, 2016.
PE619.126v03-00 16/25 RR\1153938EN.docx
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facilitate the transition to a circular economy by reducing plastic waste from bottled
water, involving major energy savings and efficient management of drinking water
resources;
The circular economy in post-2020 cohesion policy
48. Calls on the Commission, for the next programming period, to develop a relevant
tracking methodology with appropriate indicators to allow for a better monitoring of the
contribution of cohesion policy to the achievement of a circular economy in order to
offer a more precise picture of environmental and socio-economic conditions;
49. Points out that considerable support for the completion of the transition to a circular
economy is also being provided by other programmes, such as LIFE, COSME and
Horizon 2020; stresses the need to improve synergies between the above-mentioned
instruments in order to achieve the goals set out in the Commission’s Circular Economy
Action Plan;
50. Calls on the Commission, in the context of the new legislative proposals for the future
cohesion policy framework, to develop appropriate ex-ante conditionalities related to
the achievement of a circular economy; considers that circular economy strategies
should be developed in partnership with the national, regional and local authorities and
economic and social partners;
51. Calls on the Commission to ensure that the Horizon 2020 programme devotes even
greater attention and funding to innovation and research projects in the area of the
circular economy;
52. Stresses the importance of stepping up cohesion policy support for sustainable urban
and rural development, and calls for a more prominent role to be given to circular
economy-related objectives in this context; calls for innovative urban and rural actions
in this field to be continued and calls on the Commission to make maximum use of
lessons learnt in the 2014-2020 period when preparing proposals for the future; calls for
a flexible, tailor-made approach in the implementation of the Urban Agenda, providing
incentives and guidance to fully seize the potentials of cities in implementing the
circular economy;
53. Calls on the Commission to make the European Circular Economy Stakeholder
Platform a place to exchange best practices to make the best possible use of cohesion
policy resources for the transition to a circular economy;
54. Emphasises the interdependence of the circular economy and climate mitigation, and
thus calls for greater spending in circular economy- and climate-related investments in
post-2020 cohesion policy; moreover stresses that in the next multiannual financial
framework (MFF) climate-related expenditure in general should be increased in
comparison with the current one;
°
° °
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55. Instructs its President to forward this resolution to the Council and the Commission.
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27.4.2018
OPINION OF THE COMMITTEE ON THE ENVIRONMENT, PUBLIC HEALTH AND FOOD SAFETY
for the Committee on Regional Development
on cohesion policy and the circular economy
(2017/2211(INI))
Rapporteur: Stanislav Polčák
SUGGESTIONS
The Committee on the Environment, Public Health and Food Safety calls on the Committee
on Regional Development, as the committee responsible, to incorporate the following
suggestions into its motion for a resolution:
1. Considers that the transition from a linear economy model to a circular one is not a
choice but a necessity; considers that the transition to a circular economy would reduce
waste, create new high-quality jobs, increase the competitiveness of SMEs, create
opportunities for social integration, strengthen the development of clean technologies,
improve energy and resource efficiency and reduce the consumption of raw materials
and Europe’s dependence on imported raw materials and energy, such as hydrocarbons,
but believes that this transition requires innovative business models that are intended to
meet people’s consumption needs without having a damaging impact on the
environment;
2. Points to the role of the circular economy in economic, social and territorial cohesion;
points out that building a circular economy society demands a new kind of know-how
and approach, cooperation among stakeholders, the development of an operating
environment, and changes to the ways in which companies do business; considers it
essential for cohesion policy funding to be channelled more effectively towards
measures supporting the circular economy, including training activities;
3. Recommends a multi-stakeholder partnership as a means of fostering good synergies
between cohesion policy and the circular economy principles through the involvement,
on an equal basis, of all actors throughout the product life cycle, namely public
authorities, the private sector, academics and NGOs;
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4. Calls for greater attention to be focused on climate change mitigation and on coupling
the potential of the bioeconomy more effectively to the circular economy, as this could
also be a way to bolster living standards and means of livelihood in rural areas; points
out that the transition to a sustainable low-carbon circular economy could be speeded up
by reassigning support for fossil products to renewable products and production;
5. Believes that economic, social and environmental challenges can be addressed through
better funding and appropriate instruments for territorial development as well as by
supporting the circular economy; highlights the need for a long-term perspective and
clear investment signals for the transition to a circular economy; considers that the ex
ante conditionalities have helped the implementation phase of the strategic objectives of
the current cohesion funds, but that they could be further defined in detail for the post-
2020 period; calls, in this context, for compliance with the waste hierarchy, which can
be articulated in a series of ex ante conditionalities that restrict the use of funds to the
implementation of the circular economy without violating the subsidiarity principle;
calls for the introduction of financial incentives for waste prevention, strictly aligned to
the waste hierarchy as set out in Article 4 of the Waste Framework Directive1; stresses
that the cohesion funds put in place for the prevention, recycling and reuse of waste
should also comply with this hierarchy; calls on the Member States, which are obliged
to apply the EU waste hierarchy, to prioritise prevention, reuse, preparation for reuse
and recycling in their investments in waste management infrastructure; stresses the need
to lay down rules setting out the instruments and bodies responsible for monitoring
waste reduction data in all strands of production, processing and consumption;
6. Supports the strengthening of producer responsibility requirements and calls for a major
reduction of plastic in packaging and the setting-up of reusable packaging schemes by
large retail chains as a practical waste prevention tool; highlights that further steps must
be taken to extend the durability and encourage the reuse and recyclability of products,
including the introduction of financial penalties for excess packaging;
7. Recalls the new waste targets for 2025, 2030 and 2035 established in the review of EU
waste legislation and underlines that the achievement of these targets requires political
commitment at the national, regional and local levels as well as economic investments;
calls on the Member States to make full use of available Union funds in support of such
investments and underlines that these will generate significant returns in terms of
economic growth and job creation;
8. Underlines the need to collect bio-waste separately at source and to create the necessary
framework for the use of compost from bio-waste in agriculture and other sectors;
highlights that bio-waste represents a high percentage of mixed municipal waste, and
points out that the fact that the possibilities for separate collection of such waste are not
sufficient makes it impossible for bio-waste to be used and returned to the soil as
compost;
9. Stresses that the life cycle sustainability of reuse and recycling also depends on energy
consumption in transport; underlines that this applies particularly to rural areas where
longer distances between points of collection and processing sites have to be covered;
1 Directive 2008/98/EC of the European Parliament and of the Council of 19 November 2008 on waste and
repealing certain Directives (OJ L 312, 22.11.2008, p. 3).
PE619.126v03-00 20/25 RR\1153938EN.docx
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urges the Commission, the Member States and regional authorities to take the life cycle
approach into account in their circular economy strategies for rural areas in order to
avoid negative overall environmental and climate impacts;
10. Underlines the importance of regional projects to process residual waste that is entirely
non-recyclable for the purpose of producing sustainable second-generation biofuels,
after careful separation or separate collection in line with the waste hierarchy;
11. Recalls the importance of training for new jobs in the green economy: the European
Social Fund, hand in hand with European Regional Development Fund investment,
should contribute to the creation of new jobs for a circular economy;
12. Takes note that China’s new restrictive approach to imports of European waste could
have, in the short term, a negative impact on waste management in the EU; at the same
time, considers it in principle to be an opportunity for waste management in the EU and
calls, therefore, on the Member States to step up their efforts to reduce waste
generation, rethink their waste management policies, improve their resource
management, and establish a functioning EU recycling infrastructure, which would
boost the circular economy in the EU; welcomes in this context the Commission’s new
plastic strategy and recommends a higher convergence between the EU and China and
other partners to lay the foundations for a sustainable plastic economy where design and
production allow for greater durability, reuse and high-quality recycling;
13. Calls on the Commission to ensure that all definitions relating to waste comply with the
Waste Framework Directive and that comparable data are available on progress made
by Member States and local and regional authorities;
14. Calls on the Commission to strengthen the tracking of implementation by the Member
States to ensure the achievement of the transition to the circular economy;
15. Stresses that many Member States have yet to develop the necessary waste management
infrastructure; points out that it is therefore essential to set long-term policy objectives
in order to guide measures and investments, notably by preventing the creation of
structural overcapacities for the treatment of residual waste and lock-ins of recyclable
materials at the lower levels of the waste hierarchy; notes, to that end, that it is essential
to use the European Structural and Investment Funds to finance the development of the
waste management infrastructure needed for prevention, reuse and recycling;
16. Recalls that the basic problem that must be resolved first is the secondary materials
market, as if raw materials cost less than recycled ones it is clear that the drive towards
the green economy has slowed down considerably and that the use of structural funds
could be lost in a vicious circle; considers, in this context, that certain ad hoc laws (such
as the upcoming Commission proposal on single-use plastic products) and appropriate
EU-level taxation as part of the own resources of the next multiannual financial
framework can make a decisive contribution to moving towards a circular economy;
17. Welcomes the proposal to revise Drinking Water Directive 98/83/EC, which will
facilitate the transition to a circular economy by reducing plastic waste from bottled
water, involving major energy savings and efficient management of drinking water
resources;
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18. Expresses its support for regional projects for innovative manure treatment and closure
of the animal mineral cycle that help to reduce greenhouse gas emissions and nitrate
leaching and contribute to the production of green bioenergy;
19. Urges the Commission to implement the planned circular economy measures, observing
good regulatory practice, and stresses the need to monitor the implementing measures;
20. Calls on the Commission and the Member States to promote synergies between regional
projects for the circular economy in the field of organic fertilisers, such as high-grade
mineral concentrates from manure treatment, and EU legislative frameworks, inter alia
by authorising mineral concentrates as green alternatives to chemical fertiliser, subject
to the condition that they have a sufficiently high availability coefficient and thus help
to improve the quality of groundwater and surface water; urges the Commission and the
Member States to put an end to legal discrimination against sustainable organic
fertilisers based on animal manure as compared with conventional mineral fertiliser and
to amend EU legislation and definitions to this end;
21. Considers it necessary that, in developing their national waste management strategies
and planning investments in waste management infrastructure and the circular economy,
Member States should make sound use of the European Structural and Investment
Funds by promoting first prevention and reuse, followed by recycling, in line with the
waste hierarchy; takes the view that the Commission should, in accordance with the
waste hierarchy, create greater synergies between Horizon 2020 and the European
Structural and Investment Funds in order to develop an effective financial framework
that helps local authorities implement the requirements of EU waste legislation and
finance the introduction of innovative waste management technologies and methods;
22. Stresses the need to implement the Commission’s commitment to a monitoring
framework for the circular economy with a view to increasing and evaluating progress
achieved in the transition to a circular economy at EU and Member State level, while
reducing the administrative burden.
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INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION
Date adopted 25.4.2018
Result of final vote +:
–:
0:
59
1
1
Members present for the final vote Marco Affronte, Margrete Auken, Pilar Ayuso, Zoltán Balczó, Biljana
Borzan, Lynn Boylan, Nessa Childers, Birgit Collin-Langen, Miriam
Dalli, Seb Dance, Angélique Delahaye, Stefan Eck, Bas Eickhout, José
Inácio Faria, Francesc Gambús, Elisabetta Gardini, Gerben-Jan
Gerbrandy, Jens Gieseke, Julie Girling, Sylvie Goddyn, Françoise
Grossetête, Andrzej Grzyb, Jytte Guteland, Anneli Jäätteenmäki,
Benedek Jávor, Karin Kadenbach, Kateřina Konečná, Urszula Krupa,
Giovanni La Via, Peter Liese, Joëlle Mélin, Susanne Melior, Miroslav
Mikolášik, Rory Palmer, Massimo Paolucci, Piernicola Pedicini,
Bolesław G. Piecha, Pavel Poc, Julia Reid, Frédérique Ries, Michèle
Rivasi, Davor Škrlec, Renate Sommer, Estefanía Torres Martínez,
Adina-Ioana Vălean, Jadwiga Wiśniewska, Damiano Zoffoli
Substitutes present for the final vote Nikos Androulakis, Cristian-Silviu Buşoi, Caterina Chinnici, Fredrick
Federley, Anja Hazekamp, Norbert Lins, Rupert Matthews, Alojz
Peterle, Stanislav Polčák, Carolina Punset, Christel Schaldemose
Substitutes under Rule 200(2) present
for the final vote
Jude Kirton-Darling, Jeroen Lenaers, Mylène Troszczynski
RR\1153938EN.docx 23/25 PE619.126v03-00
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FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION
59 +
ALDE Fredrick Federley, Gerben-Jan Gerbrandy, Anneli Jäätteenmäki, Carolina Punset,
Frédérique Ries
ECR Urszula Krupa, Rupert Matthews, Bolesław G. Piecha, Jadwiga Wiśniewska
EFDD Piernicola Pedicini
ENF Sylvie Goddyn, Joëlle Mélin, Mylène Troszczynski
GUE/NGL Lynn Boylan, Stefan Eck, Anja Hazekamp, Kateřina Konečná, Estefanía Torres
Martínez
PPE Pilar Ayuso, Cristian-Silviu Buşoi, Birgit Collin-Langen, Angélique Delahaye, José
Inácio Faria, Francesc Gambús, Elisabetta Gardini, Jens Gieseke, Julie Girling,
Françoise Grossetête, Andrzej Grzyb, Giovanni La Via, Jeroen Lenaers, Peter Liese,
Norbert Lins, Miroslav Mikolášik, Alojz Peterle, Stanislav Polčák, Renate Sommer,
Adina-Ioana Vălean
S&D Nikos Androulakis, Biljana Borzan, Nessa Childers, Caterina Chinnici, Miriam Dalli,
Seb Dance, Jytte Guteland, Karin Kadenbach, Jude Kirton-Darling, Susanne Melior,
Rory Palmer, Massimo Paolucci, Pavel Poc, Christel Schaldemose, Damiano Zoffoli
VERTS/ALE Marco Affronte, Margrete Auken, Bas Eickhout, Benedek Jávor, Michèle Rivasi, Davor
Škrlec
1 -
EFDD Julia Reid
1 0
NI Zoltán Balczó
Key to symbols:
+ : in favour
- : against
0 : abstention
PE619.126v03-00 24/25 RR\1153938EN.docx
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INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE
Date adopted 15.5.2018
Result of final vote +:
–:
0:
31
3
0
Members present for the final vote Pascal Arimont, Franc Bogovič, Mercedes Bresso, Steeve Briois,
Andrea Cozzolino, Rosa D’Amato, Aleksander Gabelic, Ivan Jakovčić,
Constanze Krehl, Sławomir Kłosowski, Louis-Joseph Manscour, Iskra
Mihaylova, Andrey Novakov, Paul Nuttall, Younous Omarjee,
Konstantinos Papadakis, Stanislav Polčák, Liliana Rodrigues, Fernando
Ruas, Maria Spyraki, Ruža Tomašić, Ramón Luis Valcárcel Siso,
Matthijs van Miltenburg, Kerstin Westphal, Joachim Zeller
Substitutes present for the final vote Isabella Adinolfi, John Howarth, Ivana Maletić, Miroslav Mikolášik,
Bronis Ropė, Davor Škrlec, Damiano Zoffoli
Substitutes under Rule 200(2) present
for the final vote
Dariusz Rosati, Boris Zala
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FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE
31 +
ALDE Ivan Jakovčić, Iskra Mihaylova, Matthijs van Miltenburg
ECR Sławomir Kłosowski, Ruža Tomašić
EFDD Isabella Adinolfi, Rosa D'Amato
GUE/NGL Younous Omarjee
PPE Pascal Arimont, Franc Bogovič, Ivana Maletić, Miroslav Mikolášik, Andrey Novakov,
Stanislav Polčák, Dariusz Rosati, Fernando Ruas, Maria Spyraki, Ramón Luis Valcárcel
Siso, Joachim Zeller
S&D Mercedes Bresso, Andrea Cozzolino, Aleksander Gabelic, John Howarth, Constanze
Krehl, Louis-Joseph Manscour, Liliana Rodrigues, Kerstin Westphal, Boris Zala,
Damiano Zoffoli
VERTS/ALE Bronis Ropė, Davor Škrlec
3 -
EFDD Paul Nuttall
ENF Steeve Briois
NI Konstantinos Papadakis
0 0
Key to symbols:
+ : in favour
- : against
0 : abstention
